Thailand’s economic conditions showed stability and growth in October

Thai economy improved in October due to increased tourism revenue, private consumption, trade activities, manufacturing production, government spending, and stable inflation. However, some sectors remained subdued. Labor market weakened in non-tourism sectors.

• Tourism revenue increased due to higher cumulative tourist arrivals and slightly higher spending per trip, despite decreases in tourists from Malaysia and China.
• Private consumption indicators increased across all major categories, partly due to the government’s stimulus program, resulting in higher spending on consumer goods, services, and durables.
• Manufacturing production index increased, particularly in chemicals, electrical appliances, and food and beverages, but declined in categories such as petroleum and electronic circuits.

In October 2024, Thailand’s economic conditions showed stability and growth in several sectors. Foreign tourist numbers remained stable, with an increase in revenue due to higher spending per trip. Private consumption indicators rose across all major categories, partly due to a government stimulus program. Manufacturing production also increased, particularly in the chemicals, electrical appliances, and food and beverages sectors.

The value of merchandise exports remained stable, with increased exports in machinery and electronics categories, but a decline in agricultural and agro-manufacturing products. Merchandise imports increased in all major categories. Private investment indicators showed growth, as did public spending. Inflation increased primarily due to higher energy prices, while the labor market weakened. Corporate financing saw mixed trends, with some sectors showing decreases and others increases. The baht depreciated against the U.S. dollar due to uncertainties over the Federal Reserve’s policy rate decisions and the upcoming U.S. elections.

The number of foreign tourists, after seasonal adjustment, remained stable from the previous month. Tourists from Malaysia and China decreased partly due to domestic factors, while tourists from other countries, such as South Korea, Singapore, and long-haul tourists, particularly from the United States, the United Kingdom, and Germany, continued to increase. As a result, tourism revenue, after seasonal adjustment, increased due to a higher number of cumulative tourist arrivals¹ and a slightly higher spending per trip.
 

Private consumption indicators, after seasonal adjustment, increased from the previous month across all major categories, partly due to the government’s stimulus program (10,000-baht cash handout). Spending increased in consumption of 1) non-durables, driven by higher fuel consumption and sales of consumer goods, especially beverages, snacks, and tobacco, 2) durables, as reflected by higher motorcycle registrations and passenger car sales, 3) semi-durables, from higher imports of textiles and apparels, and 4) services, particularly in the hotel and restaurant category, which was in line with a greater number of Thai tourists and higher foreign tourist spending. The consumer confidence index slightly increased due to the government’s stimulus program and reduced concerns over the flood situation.

Source : https://www.bot.or.th/en/news-and-media/news/news-20241129.html